Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 43,000 units of each product. Sales and costs for each product follow.

	Product T					Product O
Sales		$	761,100				$	761,100
Variable costs			608,880					76,110
Contribution margin			152,220					684,990
Fixed costs			33,220					565,990
Income before taxes			119,000					119,000
Income taxes (30% rate)			35,700					35,700
Net income		$	83,300				$	83,300

Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) 2. Assume that the company expects sales of each product to decline to 26,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement as just shown with columns for each of the two products (assume a 30% tax rate). Also, assume that any loss before taxes yields a 30% tax benefit. (Round "per unit" answers to 2 de

3. Assume that the company expects sales of each product to increase to 57,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement shown with columns for each of the two products (assume a 30% tax rate). (Round "per unit" answers to 2 decimal places.)cimal places. Enter losses and tax benefits, if any, as negative values.)